By John Geha
As real estate professionals, we’re aware that the “red hot” market and the days of double-digit home appreciation may be behind us. The consumer’s perception of the market is also changing, fuelled by Canadian media reporting contradictory stories that could leave the consumer confused and full of indecision. Looking ahead in 2012 and 2013, CREA is forecasting little growth in sales, and predicting that home values in most markets will be little changed or even down slightly from 2011. So where does this leave you, as a real estate professional?
As I see it, there are two options. You can either work harder to earn a bigger share of a lessening sales pool or you can work smarter by doing things differently to hopefully improve profit for years to come.
In a challenging market, smart agents step up their networking to the next level. It’s simple economics…if you want to maintain your sales levels, and your current base is shrinking, you need to broaden that base. And you do that by going outside your current circles.
Canada is becoming a truly international market, a hot prospect on the global stage. Now is the time to seize that opportunity and extend your reach beyond your current boundaries. Many international buyers, particularly Asian buyers, are looking to Canada. Our stable economy, house prices that are a “bargain” on an international scale, and Canada’s reputation as an immigration-friendly country all add to our global appeal. I recently met with Coldwell Banker franchisees from around the world, and discussions with Brazil, France, China, and Latin American countries inevitably turned back to Canada. The eyes of the world are on us.
Of course, there are other reasons why Canada is now so accessible to foreign buyers. One reason is our ability to communicate through social media. If you want to access out-of-market buyers, you need to communicate globally. You also need to understand the power of video and incorporate it into your sales proposition and your networking efforts. Globally, the importance of video intensifies. When I attended this year’s Inman conference, it was revealed that 93 per cent of foreign buyers viewed their property on video first.
Here’s another stat you should know, and I consider it one of the most important in real estate today. It comes from social media company Postling.com, which says 73 per cent of homeowners are more likely to list with a Realtor offering to do a video. Yet only 12 per cent of Realtors have YouTube accounts. That’s a major disconnect between what the consumer wants, and what most of our industry offers. It also means if you’re not doing video, you’re missing business.
If there’s any doubt about the power of video, let me share a recent example with you. A soldier stationed in Afghanistan was within a few months of returning home, and like most consumers, he started his home buying search online. He quickly became frustrated after viewing what he described as “the same six photos” for property after property. Then he found a video for a listing in his search area that was posted to our YouTube channel, Coldwell Banker OnLocation. What’s remarkable about this story is that even though the home didn’t meet his criteria, he was impressed enough to email the Coldwell Banker agent, congratulating her on taking the time to do a video. Interestingly, that video was of a rather nondescript low-end property, and the agent had initially wondered whether she should even post it. To her credit, she did. That was the start of a relationship that began thousands of miles away and ultimately resulted in a sale for three times the price of the listing on that first video. There are hundreds of other stories like that one.
In addition to social media networking, face-to-face professional networking remains the life’s blood of our industry. The time is right to get involved. Canada’s growing appeal on the international scene is encouraging the growth of specialized networking groups and trade organizations. As the president of the first international chapter of AREAA, a non-profit trade organization specializing in Asian buyers, I had the opportunity to speak about our Canadian market at a recent Global Summit in New York. As sales professionals, you have opportunities to spread the word on an individual level. Networking events such as company and industry conferences are more than just a good idea – in a challenging market, they’re essential. Membership and registration fees should be budgeted for as part of your annual business plan. Remember, these opportunities help build relationships that will generate referral income for years to come. Consistently, agents who are actively involved in outside networking are the ones who succeed, regardless of changing market conditions. Make a smart investment in your future and go for it.
John Geha is president of Coldwell Banker Canada Operations ULC, and has been appointed president of AREAA Canada, the first international chapter of the Asian Real Estate Association of America, a non-profit trade organization focusing on Asian home buyers and sellers.
